First Financial Northwest Inc.’s increased and diversified originations contributed to its return to profitability during the fourth quarter of 2012.
Originations during the period, which were backed primarily by multifamily properties and commercial real estate, rose 77.1% from the previous quarter to $54.2 million. Volumes also were up from the fourth quarter of 2012 when they totaled $9.4 million.
Joseph W. Kiley III, president and CEO of the Renton, Wash.-based bank holding company, said in a press release that this helped the bank diversify its portfolio away from products like one-to-four family loans. He said the company’s construction and nonperforming loans also have declined.
Nonperforming assets, at $40.1 million, were down 6.3% from Sept. 30, 2012 and 19.4% from Dec. 31, 2011.
The company, which currently operates with
During the full year, FFN generated $2.7 million in net income, down from $4.2 million the previous year.
Going forward, Kiley said his first priority is to exit the memorandum of understanding the bank entered into in March of last year with the Federal Deposit Insurance Corp. and the Washington State Department of Financial Institutions.
He characterized the coming year as one expected to be challenging but manageable, and also noted that the company plans further efficiency moves as well as pursuit of revenue opportunities.
